One of the aims of your journaling process is to build a collection of near textbook-perfect examples of each of your trade setups.
And from these, develop awareness of the factors which lead to increased odds of success.
Friday, 21st June, offered an absolutely beautiful Breakout Failure setup.
Let's start with a 5 minute chart to get some context:
The important factor that I wish to highlight today is not where the trade occurred.
But rather – how price got there.
One of the key features I like to see, which suggests potentially increased odds of success, is price not only having to travel a long way to reach the level, but to have also STRETCHED to do so.
Looking at the 1 minute chart (my preferred Trading Timeframe in this market):
This is a Breakout Failure that I DO NOT want to miss.
Additional study for those with the YTC Price Action Trader:
In the LTF (15 sec) hanging man candle got shaken away by bearish engulfing candle (LWP),where the bears took control of the market and price started reversal .
I am going through all your blog posts after Completing YTC price action (1-3 volumes) ,I am learning a new thing everyday, thanks for taking time to share your experience via posts which is a great learning curve for budding traders (from INDIA) like me .
Correct. That’s exactly where I’d enter. Nice work.
And thank you for the kind words. Much appreciated.